Shriram Capital Ltd, which holds the Shriram group’s shares in all the financial services of the group, is richer by Rs 1,275 crore — money that the South African company, Sanlam, has brought in for its 26 per cent stake in Shriram Capital.

Sanlam first came into association with the Chennai-based conglomerate in 2006, when it became a partner with a 26 per cent stake in Shriram Life Insurance. Later, it picked up a similar stake in Shriram General Insurance also.

Finding that it meshed well with the Indian group, Sanlam expressed a desire to come on board the holding company for the group’s financial services business —Shriram Capital — which already had a foreign investor. ‘The Pacific Group’, or TPG, held 15 per cent in Shriram Capital, that it bought from the promoters of Shriram Capital — the Shriram Ownership Trust.

Shriram Capital is the holding company for all the group’s financial services — Shriram Transport Finance Company, Shriram City Union Finance, the two insurance companies and Shriram Credit which, in turn, holds a stockbroking company, a financial products distribution company and a wealth advisory business. (Incidentally, a US-based private equity fund, Leapfrog, recently invested Rs 70 crore in Shriram Credit for a 20 per cent stake.)

TPG has said it is looking to exit Shriram Capital, while continuing to be with Shriram Transport Finance. Asked about it, R. Thyagarajan, Founder-Mentor, Shriram Group, said the group is not interested in buying out TPG, but would help the investors find a buyer for their stake. “They are not in a hurry to exit,” Thyagarajan said.

vinay.kamath@thehindu.co.in

ramesh.m@thehindu.co.in

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